How to price electrical jobs in 2026
The rates the market is paying, the formula that turns your costs into a flat rate, and benchmarks for 35 residential jobs. If you'd rather just build the book, use the builder.
What the market is paying (US, 2026)
These are homeowner-facing figures from public guides, gathered August 2026. They describe what customers are being charged, not what you should charge. Dates matter. Fixr's table is January 2025, Angi and Housecall Pro are July–August 2026.
| Figure | Range | Source |
|---|---|---|
| Residential hourly rate | $75–150 | Joist (Aug 2026), Fuse Service (Jan 2026: national $100–150) |
| Hourly, by region | Midwest $70–100, South $65–95, NE/West higher | Fuse Service 2026 |
| Service call / trip fee | $79–200 | Joist, Angi Aug 2026 |
| Service call, first hour incl. | $100–200 | Angi Aug 2026 |
| Journeyman vs master (NJ) | $75–150 vs $100–200 | Malfettone 2026 |
| Material markup | 30–50%, small parts 100–300% | Build-Folio, Contractor Growth Network, r/electricians consensus |
| Overhead as % of revenue | 10–20% (up to ~45% SG&A for service shops) | Drawer AI, Profitability Partners 2026 |
| Target gross margin, residential service flat rate | 65–67% | Simpro, Profitability Partners 2026 |
| Target net margin | 10–20% | same |
| Billable hours per service electrician | 1,200–1,500 / year | Mike Holt forum benchmark |
| Permit fees | $50–500, panel upgrade $200+ | PermitFlow 2026 |
The formula
Loaded labor cost = wage × (1 + burden%)
Overhead per hour = monthly overhead ÷ billable hours per month
Break-even rate = loaded labor cost + overhead per hour
Your hourly rate = break-even ÷ (1 − target margin)
Flat price = hours × your hourly rate + materials × (1 + markup) + trip fee (+ permit, passed through)
Worked at the builder's defaults: $38 wage × 1.25 = $47.50, and $2,800 ÷ 110 = $25.45. Break-even $72.95. ÷ 0.80 = $91.19 an hour. A ceiling fan at two hours and $20 of material: 2 × 91.19 + 20 × 1.35 = $209.38, plus an $89 trip fee = $298. The market band is $312–580. The formula is honest about your costs, and the market is telling you those costs can carry more margin.
Why “wage times two” fails
It's the most common answer on r/electricians and it skips the truck. A $38 wage doubled is $76. Break-even at the numbers above is $73, so “times two” leaves three dollars an hour for profit, and nothing for the 50 hours a month you can't bill: driving, quoting, supply-house runs, callbacks, paperwork. Billable hours are the variable everyone overestimates. Count them for a month.
Flat rate or time and materials
- Flat rate for anything you've done ten times. The customer gets one number, you get paid for being fast, and you can quote over the phone from the book.
- T&M for troubleshooting and anything you can't scope. First hour at a premium, then hourly. Say so before you start.
- Check your state. California's home-improvement contract rules (B&P §7159) require a stated total price on residential contracts over $500. Other states have written-estimate requirements. A YouTube claim that “T&M is illegal” is a California rule, not a national one.
Market bands for 35 residential jobs
Job totals as published for homeowners, August 2026. Labor hours and material costs in the builder are planning estimates. The kit has them editable.
| Job | Market low | Market high | Source / note |
|---|
Mistakes that cost the most
- Pricing like an employee. “$55 an hour because I make $38” is an employee's math with a contractor's risk.
- No trip fee. The drive, the quote and the parts run are real hours. $79–200 is normal and customers expect it.
- Zero material markup. Thirty percent minimum. The part is cheap. Your time to get it isn't.
- Quoting from the other guy. You don't know his costs, his license status, or whether he's still in business next year. Quote from yours.
- Unlicensed work. Most states prohibit contracting without a license above a threshold (California: $500). This site is for licensed solo and small residential contractors.
Next step
Build your book in the builder. When you want it in a spreadsheet you own, with every hour and material editable, a quote tab, the printable price list and the objection scripts, that's the Electrician Pricing Kit ($49).